Comments on: How Do You Calculate Net Worth? http://www.myinvestingblog.com/how-do-you-calculate-net-worth/ Teach Your Money To Think! Fri, 30 Jul 2010 07:03:43 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Net worth update December 1, 2007 (+5.16%) - My Investing Blog http://www.myinvestingblog.com/how-do-you-calculate-net-worth/#comment-75 Net worth update December 1, 2007 (+5.16%) - My Investing Blog Wed, 05 Dec 2007 14:44:34 +0000 http://myinvestingblog.com/2007/10/12/how-do-you-calculate-net-worth/#comment-75 [...] everyone in the country, my house is down over the last few months, and as I per my definition of “net worth” my house (as an asset) is part of that. Coincidentally, that asset [...] [...] everyone in the country, my house is down over the last few months, and as I per my definition of “net worth” my house (as an asset) is part of that. Coincidentally, that asset [...]

]]> By: Can you add a timeshare to your net worth statement? - myinvestingblog.com http://www.myinvestingblog.com/how-do-you-calculate-net-worth/#comment-74 Can you add a timeshare to your net worth statement? - myinvestingblog.com Thu, 18 Oct 2007 21:16:27 +0000 http://myinvestingblog.com/2007/10/12/how-do-you-calculate-net-worth/#comment-74 [...] So the question at hand is whether or not this can count towards being part of your net worth.  Is it?  I mean, technically speaking there are several ways to calculate it and none are the definitive answer.  A few different views: Millionaire Next Door, Bargaineering, Young and Broke (also gives a good reason TO create the net worth), The Simple Dollar, Hellyer, MiserlyB (good comparison of pre or post-tax calculations), India4u (considers timeshare investments as part of the total), Punny (good point/battle for why it is a poor measure of wealth), and mine. [...] [...] So the question at hand is whether or not this can count towards being part of your net worth.  Is it?  I mean, technically speaking there are several ways to calculate it and none are the definitive answer.  A few different views: Millionaire Next Door, Bargaineering, Young and Broke (also gives a good reason TO create the net worth), The Simple Dollar, Hellyer, MiserlyB (good comparison of pre or post-tax calculations), India4u (considers timeshare investments as part of the total), Punny (good point/battle for why it is a poor measure of wealth), and mine. [...]

]]> By: hank http://www.myinvestingblog.com/how-do-you-calculate-net-worth/#comment-70 hank Sun, 14 Oct 2007 02:50:26 +0000 http://myinvestingblog.com/2007/10/12/how-do-you-calculate-net-worth/#comment-70 @ J - Agreed - apples are apples at all times, and oranges, oranges, you're the one that sees the net worth 99.999% of the time, so work it how it makes you feel comfortable, within reason ;) @Financialchoices - yes, I did read R. Kiyosakis book (working on a review) and yes he says that it has to be income generating to be an asset, and that's "technically" what I did with the NEW net worth calculation post because it IS generating profit, albeit VERY little, it still is... ;) Thanks for the posts! @ J – Agreed – apples are apples at all times, and oranges, oranges, you’re the one that sees the net worth 99.999% of the time, so work it how it makes you feel comfortable, within reason ;)

@Financialchoices – yes, I did read R. Kiyosakis book (working on a review) and yes he says that it has to be income generating to be an asset, and that’s “technically” what I did with the NEW net worth calculation post because it IS generating profit, albeit VERY little, it still is… ;)

Thanks for the posts!

]]> By: J at Home Finance Freedom http://www.myinvestingblog.com/how-do-you-calculate-net-worth/#comment-73 J at Home Finance Freedom Sat, 13 Oct 2007 19:57:04 +0000 http://myinvestingblog.com/2007/10/12/how-do-you-calculate-net-worth/#comment-73 Thank you. You might want to stick to the definitions from a reliable finance glossary (google for one) and choose the correct term that matches your goal. My net-worth article series (click name link for the first article) mentions other terms that are designed to focus more on liquid wealth. Thank you. You might want to stick to the definitions from a reliable finance glossary (google for one) and choose the correct term that matches your goal. My net-worth article series (click name link for the first article) mentions other terms that are designed to focus more on liquid wealth.

]]> By: Financialchoices http://www.myinvestingblog.com/how-do-you-calculate-net-worth/#comment-72 Financialchoices Sat, 13 Oct 2007 15:55:41 +0000 http://myinvestingblog.com/2007/10/12/how-do-you-calculate-net-worth/#comment-72 First time on your blog...looks great. I am currently struggling with these concepts myself. If you read "Rich Dad Poor Dad" by Robert Kiyosaki, your house is not an asset for sure. He defines an asset as something that gives you money on a monthly basis. For me, I am defining an asset as an entity I would be willing to sell at some point in the future in order to get money back. I do not count cars as assets or even liabilities. This get's into too much detail for me. We owe about $2K on my wife's car and my car is free and clear but this is not shown on my net worth worksheet. I reflect the changes in my cash flow through my bank account with the cost of a car payment. I feel ok with this method for now. If anything, I am cheating myself out of about $4K in net worth. i.e. my car is worth about $6K and my wife’s liability is about $2K. My wife and I would never really be in a position to sell our cars unless buying a new one. We need them to get to work. Thanks for commenting on my blog!! First time on your blog…looks great.
I am currently struggling with these concepts myself. If you read “Rich Dad Poor Dad” by Robert Kiyosaki, your house is not an asset for sure. He defines an asset as something that gives you money on a monthly basis. For me, I am defining an asset as an entity I would be willing to sell at some point in the future in order to get money back. I do not count cars as assets or even liabilities. This get’s into too much detail for me. We owe about $2K on my wife’s car and my car is free and clear but this is not shown on my net worth worksheet. I reflect the changes in my cash flow through my bank account with the cost of a car payment. I feel ok with this method for now. If anything, I am cheating myself out of about $4K in net worth. i.e. my car is worth about $6K and my wife’s liability is about $2K. My wife and I would never really be in a position to sell our cars unless buying a new one. We need them to get to work.
Thanks for commenting on my blog!!

]]> By: J at Home Finance Freedom http://www.myinvestingblog.com/how-do-you-calculate-net-worth/#comment-71 J at Home Finance Freedom Sat, 13 Oct 2007 14:29:18 +0000 http://myinvestingblog.com/2007/10/12/how-do-you-calculate-net-worth/#comment-71 Hello. There is only 1 basic way to do net worth, liquidating ALL assets and liabilities now. There are many ways other than net worth to track one's finances. It is OK to choose an orange as long as you do not try to convince everyone that your orange is an apple. Hello.

There is only 1 basic way to do net worth, liquidating ALL assets and liabilities now.

There are many ways other than net worth to track one’s finances.

It is OK to choose an orange as long as you do not try to convince everyone that your orange is an apple.

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